Loan
/loʊn/
Definitions
2 meaningsA sum of money borrowed from an individual or institution, with the understanding that it will be paid back with interest.
/loʊn/
A thing lent or borrowed, typically of money.
He applied for a loan to purchase a car.
💡 Simply: Imagine you ask your parents for money to buy a new video game. They say yes, but you have to pay them back later, maybe with a little extra for letting you borrow it. That's a loan!
👶 For kids: When you borrow something, like money, from someone and promise to give it back later, that's a loan.
More Examples
The company secured a large loan from investors.
She is paying back her student loan monthly.
How It's Used
"The bank approved the loan for the new business."
"She took out a student loan to pay for her education."
To give something to someone for a period of time, expecting it to be returned.
/loʊn/
To lend (something) to someone.
Can you loan me your book?
💡 Simply: Like lending a friend your favorite book. You give it to them, and they give it back later. You're loaning it!
👶 For kids: To let someone use something for a while and then get it back.
More Examples
The library loans out books to its members.
The company will loan equipment to the research team.
How It's Used
"The bank loans money to qualified borrowers."
"Can you loan me a pen?"
Idioms & expressions
loan shark
A person who lends money at excessively high interest rates, often using intimidation.
"The shady character was revealed to be a loan shark, charging exorbitant interest."
on loan
Temporarily transferred from one place or person to another.
"The painting is on loan from the museum for the exhibition."
From Middle English *lane*, from Old English *lān* ('a loan, something lent, gift'), from Proto-Germanic *laiƞō* ('loan'). Cognate with Old Frisian *lāna*, Old High German *lēhan*, and Gothic *laian*.
The word 'loan' has been used in its current sense since the Middle Ages, evolving from the act of lending or giving something temporarily.
Memory tip
Think of a friend who lends you money, and you promise to return it with extra – that's a loan!
Word Origin
"something lent, a gift"